Payments received post coding out

Where a type 16 remission has been posted against an award period, and there is not a collectible balance, any subsequent payment received will appear on the ‘Unexpected Payment Worklist’. These payments should not be reallocated or repaid, unless it is evident that the payment belongs to another award.

When you are satisfied that the payment does not relate to another award (in other words, a TTP has been set up or the claimant has made payment in full), a referral should be made to DTO Liverpool using the appropriate referral stencil. The stencil should be completed and emailed to ‘DL-Coding Out Stencils’.

DTO Liverpool will arrange for the type 16 remission to be cancelled and follow the guidance in SWI DTO Tax Credits Coding out.

NTC Household Notes will show the arrangements made with the customer to cancel coding out; for example, a time to pay arrangement.

You should take no action to reallocate or repay any payment received after a Type 16 remission is posted unless specifically requested to do so by the customer.

If a customer contacts you to advise that full payment has been made after the overpayment has been accepted for coding, you should arrange to cancel coding out provided payment has been received.

When the type 16 remission is cancelled by a DMB Operator, NTC will automatically:

carry out a review of the household account

allocate any payments received against the award period

delete the relevant entries from the unexpected payment worklist.

Repayment requested post coding.

If a customer requests repayment of a payment made after a type 16 remission is posted, you must advise that if after the PAYE end-of-year reconciliation, there is insufficient tax deducted from their PAYE code then we will take steps to recover the shortfall.